Are You Using Shopify Exchange Wrong?

There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this new series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!

CapForge Founder and Owner Matt Remuzzi shares his thoughts on whether this business owner’s business model is suitable for others. 

Video Transcript: 

Business Advice Video: 

Person 1: This is it kind of interesting. I took my store that had all these moon lamps. It was like slowing down a little bit like 2 – 3 months in. So what I did is I put on the Shopify Exchange. And what that allows you to do is like kinda like eBay for Shopify stores, right? And I’ll put that on the Shopify Exchange and I’ll get people messaging me like “Hey I wanna buy this store.” But what I did is, I priced it 1k so that it was the cheapest one online, and it was making all this revenue. So it looked like a super good deal. I know people message me like “Oh hey I wanna buy this store. Can I get it for 1k?” “I’m not gonna give you this store, but I can make you a store, the exact same. And create you like winning products, and find you all the stuff, and provide you guides. And it can be done in like 5 days.” 

Person 2: Oh man it does, like the hook to get them in.

Person 1: Yeah that first month would be like 45k 7 stores yeah

Matt’s Review:

Okay, wait, your math doesn’t make sense there. So if I understand what you did, you offered a Shopify store for sale for $1,000. Or you sound English 1k, maybe 1 thousand pounds. But whatever 1,000. People wanna buy it but you didn’t really wanna sell that. You use that to convince them you could build them a similar store as that one. And that’s what you sold them. And it took you five days and you sold seven of them in a month and made $45,000. Which sounds to me like each store was about 6,500 not 1,000. And in 5 days you put together a Shopify store that somebody was interested in buying cause it was already producing revenue and had a product. I don’t think you can do that in five days. And you can put together a Shopify website quickly. You can list product maybe if you’re dropshipping. You’re not gonna have any sales that quickly. It’s gonna take some time to get traffic and get sales and you’re not gonna know in five days whether or not you’re going to be able to have enough sales to justify that price. So it sounds like he created a Shopify store with a whole lot of hype and promise and no actual results and sold that to people for six or seven thousand dollars. So I guess you could say buyer beware. They should know what they’re getting. Understand that their store is only 5 days old and has no actual guarantee of making any sales, never mind enough to justify that price. But I guess that’s a way to do business. Hmm okay.